Some ASX shares are displaying rampant growth. Despite that, there are a number that have fallen heavily in recent times.
While a lower share price doesn't mean a business is necessarily better value, it does mean that the market capitalisation has dropped, which some investors may view as attractive.
Here are two ASX shares that fit that description:
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Volpara Health Technologies Ltd (ASX: VHT)
The Volpara share price has dropped by 30% over the last six months and is currently 87 cents.
It's currently rated as a buy by the broker Morgans with a price target of $1.94. That implies a potential upside of around 120%.
The ASX healthcare share recently released its update for the three months to 31 March 2022.
The breast screening software business reported growth in a number of different areas. Its market share has reached 35.5% of US women being screened, up from the prior quarter of around 35%.
Its quarterly cash receipts from customers were up 48% to NZ$8 million year-on-year. Meanwhile, cash receipts for the year to 31 March 2022 were up almost 45% to around NZ$28.5 million.
Annual recurring revenue (ARR) has reached NZ$31.8 million. This was an increase of more than US$700,000 from the third quarter of FY22. The company said that its software-as-a-service (SaaS) churn remains low.
Average revenue per user (ARPU) over the installed base was US$1.51 at the end of March 2022.
The company signed distribution deals in Italy and the Middle East during the quarter.
Today, the company announced the appointment of its first female CEO, Teri Thomas.
Pilbara Minerals Ltd (ASX: PLS)
The Pilbara Minerals share price has declined by more than 20% since 4 April this year to $2.85.
This ASX share is rated as a buy by the broker Citi, with a price target of $3.60. That implies a potential rise of more than 25% over the next year.
Citi notes the strong lithium price and this is expected to stay high for longer than initially expected.
The quarterly production in the three months to March 2022 by Pilbara Minerals was 81,431 dry metric tonnes (dmt) of spodumene concentrate. The average realised sales price in the quarter was around US$2,650.
The next Battery Material Exchange (BMX) auction is targeted in the last week of April, with 5,000 dmt planned for delivery during June 2022.
FY22 annualised production guidance is expected to be between 340,000 dmt and 380,000 dmt.
The rise in lithium prices is helping the company's financials. FY22 half-year sales revenue jumped almost 400% to $291.7 million. It grew its earnings before interest, tax, depreciation, and amortisation (EBITDA) to $151.1 million, up from $3.2 million.
When the lithium ASX share released its FY22 half-year result, the Pilbara Minerals managing director Ken Brinsden said:
The outlook for Pilbara Minerals in the second half of FY22 and beyond remains extremely bright. The current momentum in lithium markets continues to demonstrate higher price outcomes and we are very well placed to participate in this as production and sales volumes from the combined Pilgangoora operation continue to increase. I am confident that a combination of hard work, innovation and focus on production growth will continue to drive our success.
